Life Insurance Online :: News
SHARE

Share this news item!

New Report Highlights Insurance Challenges for Australian Small Businesses

State Taxes and Levies Contributing to Rising Insurance Premiums

New Report Highlights Insurance Challenges for Australian Small Businesses?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

A recent report by the Australian Chamber of Commerce and Industry (ACCI) has revealed that small businesses in Australia are paying up to 30% more for their insurance premiums due to taxes and levies imposed by state and territory governments.
This financial burden is leading to a worrying trend where an increasing number of small businesses are either underinsuring or forgoing insurance altogether.

The report, titled 'Addressing the Small Business Insurance Challenge,' highlights several key findings:

  • Impact of State Taxes and Levies: Additional charges such as stamp duty and emergency service levies can add up to 30% to the cost of insurance premiums, significantly affecting small businesses' financial health.
  • Underinsurance and Non-Insurance: Rising premium costs, coupled with other business expenses like energy and labour, are causing many small businesses to underinsure or opt out of insurance coverage, exposing them to greater financial risk.
  • Recommendations for Small Business Owners: The ACCI advises small business owners to engage insurance brokers to identify appropriate policies and avoid over- or under-insuring. Additionally, conducting risk audits can help mitigate exposure to threats such as cyber-attacks, workplace hazards, and physical security issues.

To alleviate the insurance cost burden, the report recommends that governments:

  • Abolish unproductive taxes and levies that inflate insurance premiums.
  • Initiate a Productivity Commission review into small business and insurance costs.
  • Modernise civil liability laws to improve access to public liability insurance for small businesses.
  • Establish a dedicated government funding body to support small businesses in enhancing their insurance literacy and risk management practices.

In summary, the ACCI's report underscores the pressing need for policy reforms to reduce the financial strain on small businesses caused by escalating insurance costs. By addressing these challenges, the aim is to foster a more sustainable and resilient small business sector in Australia.

Published:Thursday, 20th Nov 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Australian Insurers Report Record Profits Amid Public Scrutiny
Australian Insurers Report Record Profits Amid Public Scrutiny
20 Nov 2025: Paige Estritori
The Australian general insurance industry has reported an after-tax profit of $7.3 billion for the last financial year, marking its strongest performance in over a decade. This significant profit surge is attributed to lower-than-expected catastrophe losses and robust investment returns. However, this financial success has sparked public discourse regarding the fairness of pricing practices and the overall perception of the industry. - read more
ASIC Highlights Compliance Risks in Insurers' Claims Handling Practices
ASIC Highlights Compliance Risks in Insurers' Claims Handling Practices
20 Nov 2025: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has identified significant weaknesses in the claims handling practices of several insurers, raising concerns about potential compliance breaches. The regulator's recent review points to deficiencies in the oversight of expert reports and inadequate communication with consumers regarding cash settlement offers. - read more
Australian Insurers Brace for Earnings Slowdown After Record Profits
Australian Insurers Brace for Earnings Slowdown After Record Profits
20 Nov 2025: Paige Estritori
After achieving a return on equity (ROE) of 19% in the last financial year-the highest in a decade-Australian general insurers are preparing for a moderation in earnings growth. Consultancy firm Finity projects that the industry's ROE will decrease by six percentage points to 13% in the current financial year, aligning with the target range of 10% to 15%. - read more
Rising Liability Costs Put Pressure on Australia's Leisure Sector
Rising Liability Costs Put Pressure on Australia's Leisure Sector
20 Nov 2025: Paige Estritori
The Australian Amusement Leisure & Recreation Association (AALARA) has raised concerns over the escalating costs of public liability insurance, which are placing significant pressure on amusement and recreation operators across the country. This warning follows the Insurance Council of Australia's (ICA) recent call for reforms to civil liability laws. - read more
New Report Highlights Insurance Challenges for Australian Small Businesses
New Report Highlights Insurance Challenges for Australian Small Businesses
20 Nov 2025: Paige Estritori
A recent report by the Australian Chamber of Commerce and Industry (ACCI) has revealed that small businesses in Australia are paying up to 30% more for their insurance premiums due to taxes and levies imposed by state and territory governments. This financial burden is leading to a worrying trend where an increasing number of small businesses are either underinsuring or forgoing insurance altogether. - read more


Life Insurance Articles

Life Insurance for Young Adults: Why It’s Never Too Early to Get Covered
Life Insurance for Young Adults: Why It’s Never Too Early to Get Covered
Life insurance might not be at the forefront of your mind, especially when you're young and healthy. However, understanding the essence of life insurance early on can significantly impact your financial future and provide much-needed peace of mind. - read more
Understanding the Role of Life Insurance in Your Estate Plan
Understanding the Role of Life Insurance in Your Estate Plan
Estate planning is a critical process that often goes overlooked, but it's essential for securing the financial future of your loved ones and ensuring your assets are distributed according to your wishes. It involves the careful organization and protection of an individual’s estate to minimize uncertainties and facilitate the smooth transfer of assets after their passing. While it may seem complex, understanding the basics of estate planning is necessary for every Australian adult, regardless of wealth. - read more
Understanding Life Insurance Needs: A Guide for Australian Families
Understanding Life Insurance Needs: A Guide for Australian Families
Life insurance is a financial product designed to provide peace of mind by offering a safety net for your loved ones in the event of your passing. The primary purpose of life insurance is to ensure that your family is financially protected, allowing them to maintain their standard of living even without your income. - read more
Strategies to Use Life Insurance in Funding Shareholder Agreements
Strategies to Use Life Insurance in Funding Shareholder Agreements
Shareholder agreements lay the cornerstone for stable business relationships and continuity in Australia. Acting as a contract among business owners, these agreements set forth the expectations, rights, and obligations of all parties involved. They are particularly vital in delineating clear paths for dispute resolution, succession planning, and the transfer of ownership shares under varied circumstances, including the untimely death or departure of a shareholder. - read more
The Impact of Hobbies and High-Risk Activities on Life Insurance Costs
The Impact of Hobbies and High-Risk Activities on Life Insurance Costs
Life insurance is an essential financial protection that provides peace of mind to policyholders and their loved ones. The premiums you pay are determined by various factors, including age, health, lifestyle, and occupation. - read more


Start Here

Life Cover Amount:
Postcode:

Insurance quotes are provided free and without obligation by a specialist from our national broker referral network. See our privacy statement for more details.


Knowledgebase
No-Fault Insurance:
A type of car insurance where your insurer pays for your damages regardless of who is at fault in an accident.